moving the needle on culture: quantifying culture change•culture is a product of organization...
TRANSCRIPT
Moving the Needle
on Culture:
Quantifying
Culture Change
Susan Anderson,
Vice President, Hitachi Consulting
Introduction
#ACMP2015 © 2015 Association For Change Management Professionals. 2
• Susan Anderson
• Vice President leading the Organization Effectiveness (OE) Community of Practice at Hitachi Consulting
• Broad experience across ERP, custom development, process improvement, and organizational design projects with an eye towards managing buy-in and adoption and mitigating resistance.
Who I Am
Low Tech Poll #1
•Please raise the paper you took upon entry –High up in the air
•Notice the distribution across the room
#ACMP2015 2015 © ACMP All Rights Reserved 3
High Tech Poll #1
•To Begin:• Text the phrase “CultureACMP2015” to 22333. (Standard
text rates apply). • Login to: www.PollEv.com/cultureacmp2015
Question: Which best characterizes your level of exposure to Change Management
• A: Entry Level
• B: Intermediate
• C: Advanced
#ACMP2015 2015 © ACMP All Rights Reserved 4
Agenda &
Intro to Topic
The Agenda
#ACMP2015 © 2015 Association For Change Management Professionals. 6
Case Study 40 Minutes
Groundwork: What is Org Culture 10 Minutes
Introduction 5 Minutes
Deployment and Change Mgt. 15 Minutes
Wrap Up 5 Minutes
The 6-Step Culture Change Roadmap 15 Minutes
Introduction –
Learning Objectives
• Learn how to….
… create an approach to define and measure culture change
… define and measure progress towards culture change
… define levers to pull to enable long term goals
… deploy a culture change initiative
#ACMP2015 © 2015 Association For Change Management Professionals. 7
Activity
Create your ‘best’ definition of culture
3 minutes
Culture Definition
•One person from each table, please text or enter on the website the key phrases and key words from your definition into our Poll.
#ACMP2015 2015 © ACMP All Rights Reserved 9
What is Organizational
Culture?
• Organizational culture is the pattern of shared BELIEFS and VALUES learned by organization members from their experiences together that influence and guides their perceptions, perspectives and behavior PRACTICES
#ACMP2015 © 2015 Association For Change Management Professionals. 10
BELIEFS
How people feel about their work
today
VALUES
What’s really important in
enabling personal and organizational
success
PRACTICES
How people behave – this is driven by what is measured
and rewarded
What We Know About Culture
• There is no one “best” type of culture
• Culture is a product of organization success and is learned
• Culture evolves/develops naturally over time, yet tends to be relatively stable
• Culture exerts its influence often outside of immediate awareness
• Organizational cultures are complex and multi-faceted
• Culture can make a difference in business performance
• Culture differentiates organizations
#ACMP2015 © 2015 Association For Change Management Professionals. 11
Leader Behaviors Directly
Shape Culture
•Observed criteria by which leaders recruit, select, promote, or banish organizational members
•The nature / type of goals and priorities established
•Criteria used for resource allocation & capacity planning
•What is measured, rewarded, punished
•Response to critical issues
•What leaders pay attention to
#ACMP2015 © 2015 Association For Change Management Professionals. 12
Culture Change Overview
Key Points Addressing Culture Challenges
People issues cannot be ‘overhauled’ quickly
Identify and retain positive elements
Visible rewards and recognition
Leadership must be 100% committed
Shift in organizational goals requires changes in behaviors
#ACMP2015 © 2015 Association For Change Management Professionals. 13
Culture Change Overview
Success Factors for Culture Change
Leadership Alignment
Be Realistic
Define & Communicate the New Vision
Articulate Sense of Urgency
Publicize Quick Wins
#ACMP2015 © 2015 Association For Change Management Professionals. 14
The Culture Change Journey
#ACMP2015 © 2015 Association For Change Management Professionals. 15
Cultural Change
Behavioral Change
Procedural Change
Stag
es o
f Im
ple
men
tati
on
Sustainability
Improvement
Usage
Understanding
Development
Awareness
Compliance
Installation
You need to get beyond
mechanical compliance with
changes and have tools to
manage the process to
sustainability
Step 1: Culture Change
Roadmap
#ACMP2015 © 2015 Association For Change Management Professionals. 16
Where to Start?
1 Set long term vision / targets
Sample Goals
• Customer Service
• Quick on our feet
• Easy to work with – keep it simple
• Meet requirements – not order takers
• Able to communicate the value of IT to the Business (Service provided)
• Work Quality
• Prioritizing the right things
• Deliver when we say we will
• Transparency of what IT is doing
• One IT
• Not fire fighting (maybe an interim)
#ACMP2015 © 2015 Association For Change Management Professionals. 17
Sample IT Dept.
Step 2: Culture Change
Roadmap
#ACMP2015 © 2015 Association For Change Management Professionals. 18
2 Define future culture characteristics in a phased fashion (a Behavior Map)
Sample Behavior Map
#ACMP2015 © 2015 Association For Change Management Professionals. 19
Quantify Behaviors & Draft Metrics
Cultural
Change
Behavioral
Change
Procedural Change
Sta
ges
of
Imp
lem
enta
tio
n
• Consistent execution against Procedural elements
• Executing on Long Term Corrective Actions / Root Cause
Analysis excellence
• Beginning to view IT in Service Model view; removing
‘team’ barriers
• Higher quality in problem solving – solving problems with
customer orientation and long term view for improvement
to systems
• Using Remedy to actively manage work and problem
tracking vs. a red-tape system
• Moving towards ‘One IT’ – Supportive of cross-team
needs within IT
• Customer service orientation enabled through E2E approach;
creating customized solutions based on needs – not an order taker
• Running IT like a business
• Collaboration (Agility, Innovation)
Change will be measured over time in
three categories:
1. Customer Service
2. Work Quality
3. ‘One IT’
Step 3: Culture Change
Roadmap
#ACMP2015 © 2015 Association For Change Management Professionals. 20
Quantify desired behaviors associated with overall goals3
Activity
•Sample Goals for a Call center• To improve our Customer Service capability to rise to top
5% Best In Class of our industry• To increase our Customer Satisfaction scores to 95% +
#ACMP2015 2015 © ACMP All Rights Reserved 21
What behaviors might you guess need to change and how would you
measure that?
Step 4: Culture Change
Roadmap
#ACMP2015 © 2015 Association For Change Management Professionals. 22
4 Establish metrics and targets (leading
indicators) as well as weighting
Sample Metrics and behaviors
CategoryWhat will
we measure?
Value Green Yellow Red
Cu
sto
me
r Se
rvic
e
Call Hold Time
The least amount of time a customer is hold, the higher the satisfaction and perceived responsiveness
98% or more hold less than 45 seconds
Between 75% and 97% hold less than 45 seconds
Below 75% hold less than 45 seconds
#ACMP2015 © 2015 Association For Change Management Professionals. 23
Step 5: Culture Change
Roadmap
#ACMP2015 © 2015 Association For Change Management Professionals. 24
5 Develop scorecard and gather baseline
Example Culture Index
Scorecard
#ACMP2015 © 2015 Association For Change Management Professionals. 25
Categories with various weightings
Individual metrics with relative weights
Step 6: Culture Change
Roadmap
#ACMP2015 © 2015 Association For Change Management Professionals. 26
Reporting and adjusting as time goes by6
From Theory to Action
First Up – Case Studies
Followed By – Readiness Planning
The Unveiling
#ACMP2015 2015 © ACMP All Rights Reserved 28
• Post-Merger Integration Scenario• Totally fictitious • We’ll have a series of activities
through the 30 min or so
Ready? Then read your Case Studies at your table.
Activity 1
• Review Case Study Background
• Discussion 1a: • What assumptions does your table want to make about the case
study? What specific challenges do you anticipate this group needing to address?
• Discussion 1b: • How would you go about helping this team develop long term goals?
Which areas do you anticipate might emerge as a focus for goals and outcomes?
#ACMP2015 2015 © ACMP All Rights Reserved 29
10 minutes
Debrief Activity 1
•Poll: •What areas might emerge as a focus for this culture change needed for LLL and CCU?
#ACMP2015 2015 © ACMP All Rights Reserved 30
Activity 2
• Review the provided Long Term Goals
• Activity 2a: • Given the long term goals and categories, what do you think is
feasible for the short term (say, the first year)?
• Come up with 3 specific short term goals for one category
• Activity 2b: • How would you measure these newly defined short term goals?
• Develop specific goals, targets and thresholds for one of the goals you identified
#ACMP2015 2015 © ACMP All Rights Reserved 31
7 minutes
Activity 3 - Assumptions
Cultural Change
Behavioral Change
Procedural Change
Stag
es o
f Im
ple
men
tati
on
• Get three new products to market in 2016 leveraging skills across LLL / CCU.
• Create transparent performance metrics that drive the consistent behaviors.
We will measure change over time in two categories:1. Market Domination2. Culture of Accountability
Activity Step 3
• Review the provided Short Term Goals and metrics on the handout
• Activity 3a: • Given the stated short term goals and categories, assign relative
weightings to each category • Determine relative weightings for each metric listed
• Activity 3b: • In looking at the defined metrics and goals provided, how would you
approach assigning values to the Red, Yellow and Green categories?• Practice assigning values to the first two metrics
#ACMP2015 2015 © ACMP All Rights Reserved 33
8 minutes
Debrief Activity 3
• What percentage did you allocate to Category 1: Dominate the Market?
• A: 0 – 19%
• B: 20% - 39%
• C: 40% - 59%
• D: 60% - 79%
• E 80% - 100%
#ACMP2015 2015 © ACMP All Rights Reserved 34
Getting back to our craft…
#ACMP2015 2015 © ACMP All Rights Reserved 35
My thoughts on change
management and readiness…
• Visibility to metrics and progress is critical
• Finding the right range for metrics is also important – balance of motivation vs. demoralizing the team
• Communicating what is going to happen and level of transparency builds understanding and prevents members from feeling unduly exposed
• Provide the right tools, skill development, and supporting resources to enable the changes
• Sponsorship and active follow up on measures (ties back to opening on leadership influence)
• Manage expectations with leadership
#ACMP2015 2015 © ACMP All Rights Reserved 36
Change Management
Considerations
From ACMP’s Standard for Change Management©5.1.1 Define the Change
5.1.2 Determine Why the Change is Required
5.1.3 Develop a Clear Vision of the Future State
5.1.4 Identify Goals, Objectives, and Success Criteria
5.1.5 Identify Sponsors Accountable for the Change
5.1.6 Identify Stakeholders Affected by the Change
5.1.7 Assess the Change Impact
5.1.8 Assess Alignment of the Change with Organizational Strategic Objectives and Performance Measurement
5.1.9 Assess External Factors that may Affect Organizational Change
5.1.10 Assess Organization Culture(s) Related to the Change
5.1.11 Assess Organizational Capacity for Change
5.1.12 Assess Organizational Readiness for Change
5.1.13 Assess Communication Needs, Communication Channels, and Ability to Deliver Key Messages
5.1.14 Assess Learning Capabilities
5.1.15 Conduct Change Risks Assessment
#ACMP2015 2015 © ACMP All Rights Reserved 37
Much of this work is completed with the 6-Step Culture Change Roadmap
Some of this work is completed with the 6-Steps; more work is needed
Focus area for Change Management planning
Final Activity
• Around your table, discuss for your case study the three Change Management risks you see.
• Prioritize and agree on the top three risks.
• What steps would you propose to take to mitigate those top three risks?
• What other key considerations would you include in your initial change management planning?
#ACMP2015 2015 © ACMP All Rights Reserved 38
8 minutes
In Closing: Lessons Learned
#ACMP2015 © 2015 Association For Change Management Professionals. 39
• Watch for unintended outcomes for what you measure; unintended behaviors may emerge
• Measure things you want to keep in place – don’t lose sight of what is currently working
• Don’t fall into complacency trap of ‘hitting all the targets’ – ensure there is a process to keep the tension in the system for ongoing improvements
• Adapt measurements to align with changing corporate or departmental goals / objectives
• Balance of transparency vs. hanging out individuals to dry
• Revisit metrics periodically to support continuous progress to the long term objectives
Wrapping Up – Our original
Learning Objectives
• Learn how to….
… create an approach to define and measure culture change
… define and measure progress towards culture change
… define levers to pull to enable long term goals
… deploy a culture change initiative
#ACMP2015 © 2015 Association For Change Management Professionals. 40
Final Poll
• Can you do the standard polls – this was a valuable use of my time; met stated objectives, etc?
#ACMP2015 2015 © ACMP All Rights Reserved 41
Questions?
For those using the Texting method for polling, please text ‘Leave’ to end your session.
#ACMP2015 © 2015 Association For Change Management Professionals. 43
For those using the Texting method for polling, please text ‘Leave’ to end your session.
Thank you